The declaration of a hike in Dearness Allowance (DA) may be postponed, according to the 7th Pay Commission. The Central Government may declare a DA hike for its employees in June 2021, according to the National Council of JCM - Staff Side. The expected DA hike is estimated to be up to 4% of central government employees' basic salary. Siva Gopal Mishra, Secretary, Staff Side, explained the cause for the DA pause by saying that they are in regular contact with representatives from the Department of Expenditure and Department of Personnel and Training (DoPT) of the Ministry of Finance. He explained that the pause in announcing the DA hike is primarily due to the continuing second wave of Covid-19 in the nation, which has caused it to declare the hike in June. The deadline for the DA hike, which was scheduled to be declared by the end of April or the beginning of May, has now been pushed back to June. Anurag Singh Thakur, Minister of State for Finance, had previously stated that the three instalments of the dearness allowance will begin to be paid on July 1, 2021.
Anurag Thakur claimed in a letter addressed to the Upper House of Parliament about the payment of DA that the three pending DA instalments of Central Government employees will be "subsumed" and that the adjusted DA rates will take effect on July 1, 2021. Three outstanding DA instalments from January 1, 2020, July 1, 2020, and January 1, 2021 are yet to be updated. The 7th CPC pay matrix for central employees will not be affected, according to Mishra, since the central government has already frozen the DA and DR of employees and pensioners until June 2021. In a press release about how high DA is supposed to rise, Mishra stated that the average inflation rate for July to December 2020 was about 3.5 percent, which implies that central employees' DA would rise to about 4%. Mishra stated that he is in contact with central government officials regarding the three pending DA instalments and that an answer will be found soon. The bottom line is that the government is not opposed to paying unpaid DA instalments. We've presented to the government that if they can't release the outstanding three instalments of DA to employees at once, they can do so in instalments, he stated.